Income Taxes (Text Block)

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

INCOME TAXES

The provision for income taxes consists of the following:

	Year Ended June 30,
	2024		2023		2022
Current:
Federal	$	93,890	$	125,622	$	59,390
State	23,222		30,505		18,089
Deferred:
Federal	(1,615)		(40,218)		24,391
State	706		(7,981)		7,481
	$	116,203	$	107,928	$	109,351

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

	June 30,
	2024		2023
Deferred tax assets:
Contract and service revenues	$	21,985	$	18,186
Expense reserves and accruals (bad debts and compensation)	16,123		14,023
Leasing liabilities	14,755		12,462
Net operating loss and tax credit carryforwards	2,155		1,965
Other, net	3,369		2,916
Total gross deferred tax assets	58,387		49,552
Valuation allowance	(108)		(125)
Net deferred tax assets	58,279		49,427
Deferred tax liabilities:
Property and equipment depreciation	(26,689)		(27,788)
Intangibles, software development, and research and development tax amortization	(113,623)		(136,045)
Contract and service costs	(148,126)		(119,201)
Leasing right-of-use assets	(13,363)		(10,824)
Total gross deferred liabilities	(301,801)		(293,858)
Net deferred tax liability	$	(243,522)	$	(244,431)

The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:

	Year Ended June 30,
	2024		2023		2022
Computed "expected" tax expense	21.0	%	21.0	%	21.0	%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits	3.8	%	3.7	%	4.3	%
Research and development credit	(2.6)	%	(2.3)	%	(2.0)	%
Changes to prior year uncertain tax positions	0.6	%	—	%	—	%
Other (net)	0.5	%	0.3	%	(0.1)	%
	23.3	%	22.7	%	23.2	%

As of June 30, 2024, the Company has state NOL and tax credit carryforwards with a tax-effected value of $110 and $2,045, respectively. The state loss and credit carryover have varying expiration dates, ranging from fiscal 2025 to 2044. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $108 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $108 and $125 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2024, and 2023, respectively.

The Company paid income taxes, net of refunds, of $106,966, $145,862, and $60,553 in fiscal 2024, 2023, and 2022, respectively.

At June 30, 2024, the Company had $19,077 of gross unrecognized tax benefits, $17,222 of which, if recognized, would affect its effective tax rate. At June 30, 2023, the Company had $12,005 of gross unrecognized tax benefits, $10,453 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $3,351 and $1,872 related to uncertain tax positions at June 30, 2024, and 2023, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $1,132, $529, and $73 in the fiscal years ended June 30, 2024, 2023, and 2022, respectively.

A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2024, 2023, and 2022, follows:

	Unrecognized Tax Benefits
Balance at July 1, 2021	$	8,762
Additions for current year tax positions	1,863
Additions for prior year tax positions	1,642
Reductions for prior year tax positions	(36)
Reductions related to expirations of statute of limitations	(3,241)
Balance at June 30, 2022	8,990
Additions for current year tax positions	2,570
Additions for prior year tax positions	2,433
Reductions for prior year tax positions	(350)
Reductions related to expirations of statute of limitations	(1,638)
Balance at June 30, 2023	12,005
Additions for current year tax positions	3,924
Additions for prior year tax positions	4,672
Reductions related to expirations of statute of limitations	(1,524)
Balance at June 30, 2024	$	19,077

The U.S. federal income tax returns for fiscal 2021 and all subsequent years remain subject to examination as of June 30, 2024, under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of June 30, 2024, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $3,000 — $7,000 within twelve months of June 30, 2024.